Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |||||||||||||||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | |||||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | |||||||||||||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||||||||||||||
☒ | Smaller reporting company | ||||||||||||||||||||||
Emerging growth company | |||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||||||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No | |||||||||||||||||||||||
Page | ||||||||
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements | |||||||
Unaudited Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||
Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022 | ||||||||
Unaudited Consolidated Statement of Changes in Equity and Non-controlling Interests for the Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
The following initialisms or acronyms may be used in this document and shall be defined as set forth below: | ||||||||
AKIP | Advance Kern Incentive Program | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
AVEK | Antelope Valley East Kern Water Agency | |||||||
CFL | Centennial Founders, LLC | |||||||
CBD | Center for Biological Diversity | |||||||
CEQA | California Environmental Quality Act | |||||||
CFD | Community Facilities District | |||||||
CNPS | California Native Plant Society | |||||||
EBITDA | Earnings Before Interest Tax Depreciation and Amortization | |||||||
EIR | Environmental Impact Report | |||||||
FTZ | Foreign Trade Zone | |||||||
GAAP | Generally Accepted Accounting Principles | |||||||
GHG | Green House Gas | |||||||
LIBOR | London Interbank Offered Rate | |||||||
MV | Mountain Village at Tejon Ranch | |||||||
NOI | Net Operating Income | |||||||
PEF | Pastoria Energy Facility, LLC | |||||||
RWA | Tejon Ranch Conservation and Land Use Agreement | |||||||
SEC | Securities and Exchange Commission | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
SWP | State Water Project | |||||||
TCWD | Tejon-Castac Water District | |||||||
TRCC | Tejon Ranch Commerce Center | |||||||
TRPFFA | Tejon Ranch Public Facilities Financing Authority | |||||||
WRMWSD | Wheeler Ridge Maricopa Water Storage District |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Real estate - commercial/industrial | $ | $ | $ | $ | |||||||||||||||||||
Mineral resources | |||||||||||||||||||||||
Farming | |||||||||||||||||||||||
Ranch operations | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Real estate - commercial/industrial | |||||||||||||||||||||||
Real estate - resort/residential | |||||||||||||||||||||||
Mineral resources | |||||||||||||||||||||||
Farming | |||||||||||||||||||||||
Ranch operations | |||||||||||||||||||||||
Corporate expenses | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Other Income: | |||||||||||||||||||||||
Investment income | |||||||||||||||||||||||
Other (loss) income, net | ( | ||||||||||||||||||||||
Total other income | |||||||||||||||||||||||
Income from operations before equity in earnings of unconsolidated joint ventures | |||||||||||||||||||||||
Equity in earnings of unconsolidated joint ventures, net | |||||||||||||||||||||||
Income before income tax expense | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net (loss) income | ( | ||||||||||||||||||||||
Net (loss) income attributable to non-controlling interest | ( | ( | ( | ||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Net (loss) income per share attributable to common stockholders, basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Net (loss) income per share attributable to common stockholders, diluted | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | ( | ( | |||||||||||||||||||||
Unrealized gain on interest rate swap | |||||||||||||||||||||||
Other comprehensive income before taxes | |||||||||||||||||||||||
Provision for income taxes related to other comprehensive income items | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive (loss) income attributable to non-controlling interests | ( | ( | ( | ||||||||||||||||||||
Comprehensive income attributable to common stockholders | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities - available-for-sale | |||||||||||
Accounts receivable | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Real estate and improvements - held for lease, net | |||||||||||
Real estate development (includes $ | |||||||||||
Property and equipment, net | |||||||||||
Investments in unconsolidated joint ventures | |||||||||||
Net investment in water assets | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued liabilities and other | |||||||||||
Deferred income | |||||||||||
Income taxes payable | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, less current portion | |||||||||||
Long-term deferred gains | |||||||||||
Deferred tax liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Tejon Ranch Co. Stockholders’ Equity | |||||||||||
Common stock, $ | |||||||||||
Authorized shares - | |||||||||||
Issued and outstanding shares - | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Tejon Ranch Co. Stockholders’ Equity | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of (discount) premium of marketable securities | ( | ||||||||||
Equity in earnings of unconsolidated joint ventures, net | ( | ( | |||||||||
Non-cash retirement plan expense | |||||||||||
Profit from water sales1 | ( | ( | |||||||||
Profit from land sales2 | ( | ||||||||||
Loss (gain) on sale of property plant and equipment | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Stock compensation expense | |||||||||||
Excess tax (benefit) loss from stock-based compensation | ( | ||||||||||
Loan fee write-off | |||||||||||
Distribution of earnings from unconsolidated joint ventures | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables, inventories, prepaids and other assets, net | ( | ||||||||||
Current liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Maturities and sales of marketable securities | |||||||||||
Funds invested in marketable securities | ( | ( | |||||||||
Real estate and equipment expenditures | ( | ( | |||||||||
Investment in unconsolidated joint ventures | ( | ( | |||||||||
Distribution of equity from unconsolidated joint ventures | |||||||||||
Proceeds from water sales1 | |||||||||||
Investments in water assets | ( | ( | |||||||||
Net proceeds from land sales2 | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Borrowings of long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Deferred financing costs | ( | ||||||||||
Interest rate swap settlement3 | |||||||||||
Taxes on vested stock grants | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Reconciliation to amounts on consolidated balance sheets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (Shown in Other Assets) | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | |||||||||
Supplemental cash flow information | |||||||||||
Non-cash investing activities | |||||||||||
Accrued capital expenditures included in current liabilities | $ | $ | |||||||||
Accrued long-term water assets included in current liabilities | $ | $ | |||||||||
1In determining the classification of cash inflows and outflows related to water asset activity, the Company’s practices are supported by ASC 230-10-45-22, which provides that “Certain cash receipts and payments have aspects of more than one class of cash flows…. If so, the appropriate classification shall depend on the activity that is likely to be the predominant source of cash flows for the item.” Also, at the 2006 American Institute of Certified Public Accountants Conference on Current SEC and PCAOB Developments, the SEC staff discussed that an entity should be consistent in how it classifies cash outflows and inflows related to an asset’s purchase and sale and noted that when cash flow classification is unclear, registrants must use judgment and analysis that considers the nature of the activity and the predominant source of cash flow for these items. Given the nature of our water assets and the aforementioned authoritative guidance, the Company estimates the appropriate classification of water assets purchased based on the timing of the sale of the water. Water purchased in prior periods that was classified as investing was sold for $ | |||||||||||
2In determining the classification of cash inflows and outflows related to land development costs, the Company’s practices are supported by ASC 230-10-45-22, which provides that “Certain cash receipts and payments have aspects of more than one class of cash flows…. If so, the appropriate classification shall depend on the activity that is likely to be the predominant source of cash flows for the item.” Also, at the 2006 American Institute of Certified Public Accountants Conference on Current SEC and PCAOB Developments, the SEC staff discussed that an entity should be consistent in how it classifies cash outflows and inflows related to an asset’s purchase and sale and noted that when cash flow classification is unclear, registrants must use judgment and analysis that considers the nature of the activity and the predominant source of cash flow for these items. Given the nature of our land development costs and the aforementioned authoritative guidance, the Company estimates the appropriate classification of land development costs based on the timing of the sale of land. Land development costs incurred during prior periods that were classified as investing were sold for $ | |||||||||||
3The Company had an interest rate swap agreement with Wells Fargo Bank, N.A. to reduce its exposure to fluctuations in the floating interest rate tied to the London Inter-Bank Offered Rate, or LIBOR, under a term note with Wells Fargo. The hedging relationship qualified as an effective cash flow hedge at the initial assessment, based upon a regression analysis, and is recorded at fair value. On June 27, 2022, the Company terminated the interest rate swap agreement with Wells Fargo and received a $ | |||||||||||
Common Stock Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Restricted stock issuance | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes and tax benefit of vested shares | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Restricted stock issuance | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes and tax benefit of vested shares | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ | $ | $ |
Common Stock Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Stockholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock issuance | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes and tax benefit of vested shares | ( | ( | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock issuance | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld for taxes and tax benefit of vested shares | ( | ( | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted-average number of shares outstanding: | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Common stock equivalents | |||||||||||||||||||||||
Diluted shares outstanding |
($ in thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||
Marketable Securities: | Fair Value Hierarchy | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||
U.S. Treasury and agency notes | ||||||||||||||||||||||||||
with unrealized losses for less than 12 months | $ | $ | $ | $ | ||||||||||||||||||||||
with unrealized losses for more than 12 months | ||||||||||||||||||||||||||
with unrealized gains | ||||||||||||||||||||||||||
Total U.S. Treasury and agency notes | Level 2 | |||||||||||||||||||||||||
Corporate notes | ||||||||||||||||||||||||||
with unrealized losses for less than 12 months | ||||||||||||||||||||||||||
with unrealized losses for more than 12 months | ||||||||||||||||||||||||||
with unrealized gains | ||||||||||||||||||||||||||
Total Corporate notes | Level 2 | |||||||||||||||||||||||||
$ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||
($ in thousands) | 2023 | 2024 | Total | ||||||||||||||
U.S. Treasury and agency notes | $ | $ | $ | ||||||||||||||
Corporate notes | |||||||||||||||||
$ | $ | $ |
December 31, 2022 | |||||||||||||||||
($ in thousands) | 2023 | 2024 | Total | ||||||||||||||
U.S. Treasury and agency notes | $ | $ | $ | ||||||||||||||
Corporate notes | |||||||||||||||||
$ | $ | $ |
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Real estate development | |||||||||||
Mountain Village | $ | $ | |||||||||
Centennial | |||||||||||
Grapevine | |||||||||||
Tejon Ranch Commerce Center | |||||||||||
Real estate development | $ | $ | |||||||||
Real estate and improvements - held for lease | |||||||||||
Tejon Ranch Commerce Center | $ | $ | |||||||||
Less accumulated depreciation | ( | ( | |||||||||
Real estate and improvements - held for lease, net | $ | $ |
September 30, 2023 | September 30, 2022 | ||||||||||
Acre-Feet Sold | |||||||||||
Revenues | $ | $ | |||||||||
Cost of sales | |||||||||||
Profit | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Banked water and water for future delivery | $ | $ | |||||||||
Transferable water | |||||||||||
Total water held for future use at cost | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Costs | Accumulated Depreciation | Costs | Accumulated Depreciation | ||||||||||||||||||||
Dudley-Ridge water rights | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Nickel water rights | ( | ( | |||||||||||||||||||||
Tulare Lake Basin water rights | ( | ( | |||||||||||||||||||||
$ | $ | ( | $ | $ | ( | ||||||||||||||||||
Net cost of purchased water contracts | |||||||||||||||||||||||
Total cost of water held for future use | |||||||||||||||||||||||
Net investments in water assets | $ | $ | |||||||||||||||||||||
(in acre-feet, unaudited) | September 30, 2023 | December 31, 2022 | |||||||||
Water held for future use | |||||||||||
TCWD - Banked water owned by the Company | |||||||||||
Company water bank | |||||||||||
Transferable water | |||||||||||
Recharged project water | |||||||||||
Total water held for future use | |||||||||||
Purchased water contracts | |||||||||||
Water Contracts (Dudley-Ridge, Nickel and Tulare) | |||||||||||
WRMWSD - Contracts with the Company | |||||||||||
TCWD - Contracts with the Company | |||||||||||
Total purchased water contracts | |||||||||||
Total water held for future use and purchased water contracts |
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Accrued vacation | $ | $ | |||||||||
Accrued paid personal leave | |||||||||||
Accrued bonus | |||||||||||
Property tax payable | |||||||||||
Other | |||||||||||
$ | $ | ||||||||||
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Notes payable | $ | $ | |||||||||
Less: line-of-credit and current maturities of long-term debt | ( | ( | |||||||||
Less: deferred loan costs | ( | ( | |||||||||
Long-term debt, less current portion | $ | $ |
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Pension liability (See Note 13)1 | $ | $ | |||||||||
Supplemental executive retirement plan liability (See Note 13) | |||||||||||
Excess joint venture distributions and other | |||||||||||
Total | $ | $ | |||||||||
1The Company's pension account had an asset balance of $ |
Performance Condition Grants | |||||
Target performance | |||||
Maximum performance |
September 30, 2023 | |||||
Stock Grants Outstanding Beginning of Period at Target Achievement | |||||
New Stock Grants/Additional Shares due to Achievement in Excess of Target | |||||
Vested Grants | ( | ||||
Expired/Forfeited Grants | ( | ||||
Stock Grants Outstanding End of Period at Target Achievement |
($ in thousands except for share prices) | |||||||||||||||||||||||||||||||||||||||||
Grant date | 12/11/2020 | 03/18/2021 | 12/16/2021 | 03/17/2022 | 12/14/2022 | 06/16/2023 | 06/16/2023 | ||||||||||||||||||||||||||||||||||
Vesting end | 12/31/2023 | 03/18/2024 | 12/16/2024 | 03/17/2025 | 12/14/2025 | 12/31/2023 | 12/31/2025 | ||||||||||||||||||||||||||||||||||
Target share price to achieve award | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Expected volatility | |||||||||||||||||||||||||||||||||||||||||
Risk-free interest rate | |||||||||||||||||||||||||||||||||||||||||
Fair value per share at grant date | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Shares granted | |||||||||||||||||||||||||||||||||||||||||
Total fair value of award | $ | $ | $ | $ | $ | $ | $ |
($ in thousands) | Nine Months Ended September 30, | ||||||||||
Employee: | 2023 | 2022 | |||||||||
Expensed | $ | $ | |||||||||
Capitalized | |||||||||||
Director - Expensed | |||||||||||
Total Stock Compensation Costs | $ | $ |
September 30, 2023 | ||||||||||||||||||||||||||||||||
Effective Date | Maturity Date | Fair Value Hierarchy | Weighted Average Interest Pay Rate | Fair Value | Notional Amount | |||||||||||||||||||||||||||
June 30, 2022 | June 30, 2032 | Level 2 | $ | $ |
December 31, 2022 | ||||||||||||||||||||||||||||||||
Effective Date | Maturity Date | Fair Value Hierarchy | Weighted Average Interest Pay Rate | Fair Value | Notional Amount | |||||||||||||||||||||||||||
June 30, 2022 | June 30, 2032 | Level 2 | $ | $ |
Nine Months Ended September 30, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
(Cost)/earnings components: | |||||||||||
Interest cost | $ | ( | $ | ( | |||||||
Expected return on plan assets | |||||||||||
Net amortization and deferral | ( | ( | |||||||||
Total net periodic pension (cost)/earnings | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Cost components: | |||||||||||
Interest cost | $ | ( | $ | ( | |||||||
Net amortization and other | ( | ( | |||||||||
Total net periodic pension cost | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Commercial/industrial revenues | $ | $ | $ | $ | |||||||||||||||||||
Equity in earnings of unconsolidated joint ventures | |||||||||||||||||||||||
Commercial/industrial revenues and equity in earnings of unconsolidated joint ventures | |||||||||||||||||||||||
Commercial/industrial expenses | |||||||||||||||||||||||
Operating results from commercial/industrial and unconsolidated joint ventures | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Mineral resources revenues | $ | $ | $ | $ | |||||||||||||||||||
Mineral resources expenses | |||||||||||||||||||||||
Operating results from mineral resources | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Farming revenues | $ | $ | $ | $ | |||||||||||||||||||
Farming expenses | |||||||||||||||||||||||
Operating results from farming | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Ranch operations revenues | $ | $ | $ | $ | |||||||||||||||||||
Ranch operations expenses | |||||||||||||||||||||||
Operating results from ranch operations | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Joint Venture | TRC | ||||||||||||||||||||||||||||||||||
($ in thousands) | Revenues | Earnings (Loss) | Equity in Earnings (Loss) | ||||||||||||||||||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
18-19 West, LLC | ( | ( | |||||||||||||||||||||||||||||||||
TRCC/Rock Outlet Center, LLC1 | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
TRC-MRC 1, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 2, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 3, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 4, LLC | ( | ( | |||||||||||||||||||||||||||||||||
TRC-MRC 5, LLC | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Centennial Founders, LLC | $ | $ | $ | ( | $ | ( | Consolidated | ||||||||||||||||||||||||||||
(1) Revenues for TRCC/Rock Outlet Center are presented net of non-cash tenant allowance amortization of $ | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Joint Venture | TRC | ||||||||||||||||||||||||||||||||||
($ in thousands) | Revenues | Earnings (Loss) | Equity in Earnings (Loss) | ||||||||||||||||||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
18-19 West, LLC | ( | ( | |||||||||||||||||||||||||||||||||
TRCC/Rock Outlet Center, LLC1 | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
TRC-MRC 1, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 2, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 3, LLC | |||||||||||||||||||||||||||||||||||
TRC-MRC 4, LLC | ( | ( | |||||||||||||||||||||||||||||||||
TRC-MRC 5, LLC | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Centennial Founders, LLC | $ | $ | $ | ( | $ | Consolidated | |||||||||||||||||||||||||||||
(1) Revenues for TRCC/Rock Outlet Center are presented net of non-cash tenant allowance amortization of $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Joint Venture | TRC | Joint Venture | TRC | ||||||||||||||||||||||||||
($ in thousands) | Assets | Debt | Equity (Deficit) | Equity | Assets | Debt | Equity (Deficit) | Equity | |||||||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||
TRCC/Rock Outlet Center, LLC | ( | ( | |||||||||||||||||||||||||||
TRC-MRC 1, LLC | ( | ( | |||||||||||||||||||||||||||
TRC-MRC 2, LLC | ( | ( | ( | ( | |||||||||||||||||||||||||
TRC-MRC 3, LLC | ( | ( | |||||||||||||||||||||||||||
TRC-MRC 4, LLC | ( | ( | ( | ||||||||||||||||||||||||||
TRC-MRC 5, LLC | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||
Centennial Founders, LLC | $ | $ | $ | *** | $ | $ | $ | *** | |||||||||||||||||||||
*** Centennial Founders, LLC is consolidated within the Company's financial statements. |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Commercial/industrial revenues | |||||||||||||||||||||||
Pastoria Energy Facility | $ | 1,539 | $ | 1,385 | $ | 154 | 11 | % | |||||||||||||||
TRCC Leasing | 439 | 384 | 55 | 14 | % | ||||||||||||||||||
TRCC management fees and reimbursements | 395 | 223 | 172 | 77 | % | ||||||||||||||||||
Commercial leases | 173 | 167 | 6 | 4 | % | ||||||||||||||||||
Communication leases | 251 | 254 | (3) | (1) | % | ||||||||||||||||||
Landscaping and other | 600 | 314 | 286 | 91 | % | ||||||||||||||||||
Land sale | — | 19,625 | (19,625) | (100) | % | ||||||||||||||||||
Total commercial/industrial revenues | $ | 3,397 | $ | 22,352 | $ | (18,955) | (85) | % | |||||||||||||||
Total commercial/industrial expenses | $ | 2,137 | $ | 6,845 | $ | (4,708) | (69) | % | |||||||||||||||
Operating income from commercial/industrial | $ | 1,260 | $ | 15,507 | $ | (14,247) | (92) | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Commercial revenues | |||||||||||||||||||||||
Pastoria Energy Facility | $ | 3,895 | $ | 3,377 | $ | 518 | 15 | % | |||||||||||||||
TRCC Leasing | 1,265 | 1,138 | 127 | 11 | % | ||||||||||||||||||
TRCC management fees and reimbursements | 842 | 1,173 | (331) | (28) | % | ||||||||||||||||||
Commercial leases | 495 | 483 | 12 | 2 | % | ||||||||||||||||||
Communication leases | 782 | 762 | 20 | 3 | % | ||||||||||||||||||
Landscaping and other | 1,427 | 924 | 503 | 54 | % | ||||||||||||||||||
Land sale | — | 24,306 | (24,306) | (100) | % | ||||||||||||||||||
Total commercial revenues | $ | 8,706 | $ | 32,163 | $ | (23,457) | (73) | % | |||||||||||||||
Total commercial expenses | $ | 5,517 | $ | 11,403 | $ | (5,886) | (52) | % | |||||||||||||||
Operating income from commercial/industrial | $ | 3,189 | $ | 20,760 | $ | (17,571) | (85) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Mineral resources revenues | |||||||||||||||||||||||
Oil and gas | $ | 243 | $ | 322 | $ | (79) | (25) | % | |||||||||||||||
Cement | 680 | 797 | (117) | (15) | % | ||||||||||||||||||
Rock aggregate | 671 | 761 | (90) | (12) | % | ||||||||||||||||||
Exploration leases | 9 | 18 | (9) | (50) | % | ||||||||||||||||||
Water Sales | 1,516 | 1,228 | 288 | 23 | % | ||||||||||||||||||
Reimbursables and other | (1) | 13 | (14) | (108) | % | ||||||||||||||||||
Total mineral resources revenues | $ | 3,118 | $ | 3,139 | $ | (21) | (1) | % | |||||||||||||||
Total mineral resources expenses | $ | 2,000 | $ | 1,745 | $ | 255 | 15 | % | |||||||||||||||
Operating income from mineral resources | $ | 1,118 | $ | 1,394 | $ | (276) | (20) | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Mineral resources revenues | |||||||||||||||||||||||
Oil and gas | $ | 760 | $ | 1,032 | $ | (272) | (26) | % | |||||||||||||||
Cement | 1,870 | 2,231 | (361) | (16) | % | ||||||||||||||||||
Rock aggregate | 1,457 | 1,560 | (103) | (7) | % | ||||||||||||||||||
Exploration leases | 26 | 88 | (62) | (70) | % | ||||||||||||||||||
Water Sales | 6,615 | 13,635 | (7,020) | (51) | % | ||||||||||||||||||
Reimbursables and other | 902 | 692 | 210 | 30 | % | ||||||||||||||||||
Total mineral resources revenues | $ | 11,630 | $ | 19,238 | $ | (7,608) | (40) | % | |||||||||||||||
Total mineral resources expenses | $ | 6,991 | $ | 11,347 | $ | (4,356) | (38) | % | |||||||||||||||
Operating income from mineral resources | $ | 4,639 | $ | 7,891 | $ | (3,252) | (41) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Farming revenues | |||||||||||||||||||||||
Almonds | $ | 581 | $ | 1,752 | $ | (1,171) | (67) | % | |||||||||||||||
Pistachios | — | 903 | (903) | (100) | % | ||||||||||||||||||
Wine grapes | 1,885 | 1,906 | (21) | (1) | % | ||||||||||||||||||
Hay | 15 | 55 | (40) | (73) | % | ||||||||||||||||||
Other | 161 | 160 | 1 | 1 | % | ||||||||||||||||||
Total farming revenues | $ | 2,642 | $ | 4,776 | $ | (2,134) | (45) | % | |||||||||||||||
Total farming expenses | $ | 2,157 | $ | 8,752 | $ | (6,595) | (75) | % | |||||||||||||||
Operating loss from farming | $ | 485 | $ | (3,976) | $ | 4,461 | (112) | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Farming revenues | |||||||||||||||||||||||
Almonds | $ | 2,153 | $ | 3,878 | $ | (1,725) | (44) | % | |||||||||||||||
Pistachios | (4) | 903 | (907) | (100) | % | ||||||||||||||||||
Wine grapes | 1,924 | 1,906 | 18 | 1 | % | ||||||||||||||||||
Hay | 190 | 373 | (183) | (49) | % | ||||||||||||||||||
Other | 589 | 292 | 297 | 102 | % | ||||||||||||||||||
Total farming revenues | $ | 4,852 | $ | 7,352 | $ | (2,500) | (34) | % | |||||||||||||||
Total farming expenses | $ | 5,644 | $ | 13,976 | $ | (8,332) | (60) | % | |||||||||||||||
Operating loss from farming | $ | (792) | $ | (6,624) | $ | 5,832 | (88) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Ranch Operations revenues | |||||||||||||||||||||||
Game management and other 1 | $ | 693 | $ | 838 | $ | (145) | (17) | % | |||||||||||||||
Grazing | 359 | 370 | (11) | (3) | % | ||||||||||||||||||
Total Ranch Operations revenues | $ | 1,052 | $ | 1,208 | $ | (156) | (13) | % | |||||||||||||||
Total Ranch Operations expenses | $ | 1,196 | $ | 1,143 | $ | 53 | 5 | % | |||||||||||||||
Operating (loss) income from Ranch Operations | $ | (144) | $ | 65 | $ | (209) | (322) | % | |||||||||||||||
1 Game management and other revenues consist of revenues from hunting, filming, High Desert Hunt Club (a premier upland bird hunting club), and other ancillary activities. |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Ranch Operations revenues | |||||||||||||||||||||||
Game Management and other 1 | $ | 2,096 | $ | 2,001 | $ | 95 | 5 | % | |||||||||||||||
Grazing | 1,288 | 1,010 | 278 | 28 | % | ||||||||||||||||||
Total Ranch Operations revenues | $ | 3,384 | $ | 3,011 | $ | 373 | 12 | % | |||||||||||||||
Total Ranch Operations expenses | $ | 3,864 | $ | 3,708 | $ | 156 | 4 | % | |||||||||||||||
Operating loss from Ranch Operations | $ | (480) | $ | (697) | $ | 217 | (31) | % | |||||||||||||||
1 Game management and other revenues consist of revenues from hunting, filming, High Desert Hunt Club (a premier upland bird hunting club), and other ancillary activities. |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Equity in earnings (loss) | |||||||||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | 1,041 | $ | 2,192 | $ | (1,151) | (53) | % | |||||||||||||||
18-19 West, LLC | — | (7) | 7 | (100) | % | ||||||||||||||||||
TRCC/Rock Outlet Center, LLC | (376) | (472) | 96 | (20) | % | ||||||||||||||||||
TRC-MRC 1, LLC | 187 | 29 | 158 | 545 | % | ||||||||||||||||||
TRC-MRC 2, LLC | 341 | 171 | 170 | 99 | % | ||||||||||||||||||
TRC-MRC 3, LLC | 33 | 78 | (45) | (58) | % | ||||||||||||||||||
TRC-MRC 4, LLC | (59) | — | (59) | 100 | % | ||||||||||||||||||
TRC-MRC 5, LLC | (6) | — | (6) | 100 | % | ||||||||||||||||||
Total equity in earnings | $ | 1,161 | $ | 1,991 | $ | (830) | (42) | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Equity in earnings (loss) | |||||||||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | 4,128 | $ | 5,306 | $ | (1,178) | (22) | % | |||||||||||||||
18-19 West, LLC | — | (31) | 31 | (100) | % | ||||||||||||||||||
TRCC/Rock Outlet Center, LLC | (1,256) | (1,161) | (95) | 8 | % | ||||||||||||||||||
TRC-MRC 1, LLC | 413 | 26 | 387 | * | |||||||||||||||||||
TRC-MRC 2, LLC | 1,042 | 512 | 530 | 104 | % | ||||||||||||||||||
TRC-MRC 3, LLC | 235 | 220 | 15 | 7 | % | ||||||||||||||||||
TRC-MRC 4, LLC | 75 | (5) | 80 | * | |||||||||||||||||||
TRC-MRC 5, LLC | (21) | — | (21) | * | |||||||||||||||||||
Total equity in earnings | $ | 4,616 | $ | 4,867 | $ | (251) | (5) | % | |||||||||||||||
*Percentage change not meaningful |
(in thousands) | 2023 | 2022 | |||||||||
Operating activities | $ | 14,750 | $ | 1,868 | |||||||
Investing activities | $ | (6,805) | $ | (5,383) | |||||||
Financing activities | $ | (3,915) | $ | (2,372) |
Payments Due by Period | |||||||||||||||||||||||||||||
(In thousands) | Total | One Year or Less | Years 2-3 | Years 4-5 | Thereafter | ||||||||||||||||||||||||
Contractual Obligations: | |||||||||||||||||||||||||||||
Estimated water payments | $ | 290,313 | $ | 12,800 | $ | 26,762 | $ | 28,393 | $ | 222,358 | |||||||||||||||||||
Long-term debt | 48,832 | 1,844 | 3,964 | 4,363 | 38,661 | ||||||||||||||||||||||||
Interest on long-term debt | 16,116 | 2,204 | 4,146 | 3,765 | 6,001 | ||||||||||||||||||||||||
Cash contract commitments | 11,161 | 7,002 | 2,570 | 518 | 1,071 | ||||||||||||||||||||||||
Defined Benefit Plan | 4,735 | 341 | 839 | 993 | 2,562 | ||||||||||||||||||||||||
SERP | 4,973 | 515 | 1,059 | 1,108 | 2,291 | ||||||||||||||||||||||||
Financing fees | 163 | 163 | — | — | — | ||||||||||||||||||||||||
Total contractual obligations | $ | 376,293 | $ | 24,869 | $ | 39,340 | $ | 39,140 | $ | 272,944 |
Amount of Commitment Expiration Per Period | |||||||||||||||||||||||||||||
($ in thousands) | Total | < 1 year | 2 -3 Years | 4 -5 Years | After 5 Years | ||||||||||||||||||||||||
Other Commercial Commitments: | |||||||||||||||||||||||||||||
Standby letter of credit | $ | 4,393 | $ | 4,393 | $ | — | $ | — | $ | — | |||||||||||||||||||
Total other commercial commitments | $ | 4,393 | $ | 4,393 | $ | — | $ | — | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (347) | $ | 10,173 | $ | 1,697 | $ | 13,825 | |||||||||||||||
Net (loss) income attributable to non-controlling interest | (6) | (11) | (3) | 1 | |||||||||||||||||||
Net (loss) income attributable to common stockholders | (341) | 10,184 | 1,700 | 13,824 | |||||||||||||||||||
Interest, net | |||||||||||||||||||||||
Consolidated | (700) | (204) | (1,775) | (300) | |||||||||||||||||||
Our share of interest expense from unconsolidated joint ventures | 1,216 | 725 | 3,618 | 1,955 | |||||||||||||||||||
Total interest, net | 516 | 521 | 1,843 | 1,655 | |||||||||||||||||||
Income taxes | 2,215 | 3,221 | 3,619 | 6,262 | |||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
Consolidated | 1,028 | 1,294 | 3,003 | 3,342 | |||||||||||||||||||
Our share of depreciation and amortization from unconsolidated joint ventures | 1,393 | 1,095 | 4,005 | 3,337 | |||||||||||||||||||
Total depreciation and amortization | 2,421 | 2,389 | 7,008 | 6,679 | |||||||||||||||||||
EBITDA | 4,811 | 16,315 | 14,170 | 28,420 | |||||||||||||||||||
Stock compensation expense | 864 | 1 | 2,369 | 2,088 | |||||||||||||||||||
Adjusted EBITDA | $ | 5,675 | $ | 16,316 | $ | 16,539 | $ | 30,508 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||
Revenues | $ | 3,397 | $ | 22,352 | $ | 8,706 | $ | 32,163 | |||||||||||||||
Expenses | 2,137 | 6,845 | 5,517 | 11,403 | |||||||||||||||||||
Commercial/Industrial operating income | $ | 1,260 | $ | 15,507 | $ | 3,189 | $ | 20,760 | |||||||||||||||
Plus: Commercial/Industrial depreciation and amortization | 108 | 112 | 327 | 341 | |||||||||||||||||||
Plus: General, administrative, cost of sales and other expenses | 1,927 | 6,638 | 4,824 | 10,750 | |||||||||||||||||||
Less: Other revenues including land sales | (954) | (20,160) | (2,154) | (26,394) | |||||||||||||||||||
Total Commercial/Industrial net operating income | $ | 2,341 | $ | 2,097 | $ | 6,186 | $ | 5,457 |
($ in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
Net operating income | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Pastoria Energy Facility | $ | 1,572 | $ | 1,382 | $ | 3,997 | $ | 3,367 | |||||||||||||||
TRCC | 350 | 301 | 947 | 877 | |||||||||||||||||||
Communication leases | 252 | 254 | 773 | 753 | |||||||||||||||||||
Other commercial leases | 167 | 160 | 469 | 460 | |||||||||||||||||||
Total Commercial/Industrial net operating income | $ | 2,341 | $ | 2,097 | $ | 6,186 | $ | 5,457 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Earnings of unconsolidated joint ventures | $ | 1,975 | $ | 3,251 | $ | 7,856 | $ | 7,965 | |||||||||||||||
Interest expense of unconsolidated joint ventures | 2,389 | 1,416 | 7,116 | 3,838 | |||||||||||||||||||
Operating income of unconsolidated joint ventures | 4,364 | 4,667 | 14,972 | 11,803 | |||||||||||||||||||
Depreciation and amortization of unconsolidated joint ventures | 2,620 | 2,045 | 7,578 | 6,242 | |||||||||||||||||||
Net operating income of unconsolidated joint ventures | $ | 6,984 | $ | 6,712 | $ | 22,550 | $ | 18,045 |
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Marketable securities | $15,941 | $13,594 | $— | $— | $— | $— | $29,535 | $29,456 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.87% | 5.02% | —% | —% | —% | —% | 4.94% | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt ($4.75M note) | $67 | $277 | $289 | $302 | $315 | $244 | $1,494 | $1,494 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||||||||||||||||||||||||||||||||||
Long-term debt ($49.1M note) | $389 | $1,589 | $1,669 | $1,753 | $1,840 | $40,098 | $47,338 | $47,338 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% |
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Marketable securities | $32,652 | $1,000 | $— | $— | $— | $— | $33,652 | $33,444 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 2.82% | 5.20% | —% | —% | —% | —% | 2.89% | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt ($4.75M note) | $265 | $277 | $289 | $302 | $315 | $244 | $1,692 | $1,692 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||||||||||||||||||||||||||||||||||
Long-term debt ($49.1M note) | $1,513 | $1,589 | $1,669 | $1,753 | $1,840 | $40,098 | $48,462 | $48,462 | |||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% | 4.62% | ||||||||||||||||||||||||||||||||||||||||
Item 6. Exhibits: | ||||||||||||||
3.1 | FN 1 | |||||||||||||
3.2 | FN 2 | |||||||||||||
4.3 | FN 5 | |||||||||||||
4.5 | FN 37 | |||||||||||||
10.1 | Water Service Contract with Wheeler Ridge-Maricopa Water Storage District (without exhibits), amendments originally filed under Item 11 to Registrant's Annual Report on Form 10-K | FN 6 | ||||||||||||
10.7 | FN 7 | |||||||||||||
10.8 | FN 7 | |||||||||||||
10.9 | FN 8 |
10.9(1) | FN 7 | |||||||||||||
10.10 | FN 9 | |||||||||||||
10.10(1) | FN 7 | |||||||||||||
10.12 | FN 10 | |||||||||||||
10.15 | FN 11 | |||||||||||||
10.16 | FN 12 | |||||||||||||
10.17 | FN 13 | |||||||||||||
10.18 | FN 13 | |||||||||||||
10.19 | FN 13 | |||||||||||||
10.23 | FN 14 | |||||||||||||
10.24 | FN 15 | |||||||||||||
10.25 | FN 16 | |||||||||||||
10.26 | FN 17 | |||||||||||||
10.27 | FN 18 | |||||||||||||
10.28 | FN 19 | |||||||||||||
10.29 | FN 20 | |||||||||||||
10.30 | FN 21 | |||||||||||||
10.31 | FN 22 | |||||||||||||
10.32 | FN 25 | |||||||||||||
10.33 | FN 36 | |||||||||||||
10.34 | FN 23 | |||||||||||||
10.35 | FN 24 | |||||||||||||
10.37 | FN 26 | |||||||||||||
10.38 | FN 27 | |||||||||||||
10.39 | FN 28 | |||||||||||||
10.40 | FN 29 | |||||||||||||
10.41 | FN 30 | |||||||||||||
10.42 | FN 31 | |||||||||||||
10.43 | FN 32 | |||||||||||||
10.44 | FN 33 | |||||||||||||
10.45 | FN 34 | |||||||||||||
10.46 | FN 35 | |||||||||||||
10.47 | FN 38 | |||||||||||||
10.48 | FN 39 | |||||||||||||
10.49 | FN 40 | |||||||||||||
10.50 | FN 41 | |||||||||||||
10.51 | FN 42 | |||||||||||||
10.52 | FN 43 | |||||||||||||
10.53 | FN 44 | |||||||||||||
31.1 | Filed herewith | |||||||||||||
31.2 | Filed herewith | |||||||||||||
32 | Furnished | |||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | Filed herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | Filed herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | Filed herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | Filed herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | Filed herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | Filed herewith | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||||||||
* | Management contract, compensatory plan or arrangement. |
FN 1 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 3.1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2021, is incorporated herein by reference. | |||||||
FN 2 | ||||||||
FN 5 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 4.1 to our Current Report on Form 8-K filed on December 20, 2005, is incorporated herein by reference. |
FN 6 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) under Item 14 to our Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by reference. This Exhibit was not filed with the Securities and Exchange Commission in an electronic format. | |||||||
FN 7 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) under Item 14 to our Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by reference. | |||||||
FN 8 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.9 to our Annual Report on Form 10-K for the year ended December 31, 2008, is incorporated herein by reference. | |||||||
FN 9 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.10 to our Annual Report on Form 10-K for the year ended December 31, 2008, is incorporated herein by reference | |||||||
FN 10 | This document filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.16 to our Annual Report on Form 10-K for the year ended December 31, 2001, is incorporated herein by reference. | |||||||
FN 11 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 4.1 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |||||||
FN 12 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 4.2 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |||||||
FN 13 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibits 10.21-10.23 to our Annual Report on Form 10-K for the year ended December 31, 2004, is incorporated herein by reference. | |||||||
FN 14 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.24 to our Current Report on Form 8-K filed on May 24, 2006, is incorporated herein by reference. | |||||||
FN 15 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.28 to our Current Report on Form 8-K filed on June 23, 2008, is incorporated herein by reference. | |||||||
FN 16 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.25 to our Quarterly Report on Form 10-Q for the period ended June 30, 2009, is incorporated herein by reference. | |||||||
FN 17 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.26 to our Quarterly Report on Form 10-Q for the period ended March 31, 2013, for the period ended March 31, 2013, is incorporated herein by reference. | |||||||
FN 18 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.27 to our Current Report on Form 8-K filed on June 4, 2013, is incorporated herein by reference. | |||||||
FN 19 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.1 to our Current Report on Form 8-K filed on August 8, 2013, is incorporated herein by reference. | |||||||
FN 20 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.29 to our Amended Annual Report on Form 10-K/A for the year ended December 31, 2013, is incorporated herein by reference. | |||||||
FN 21 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.30 to our Current Report on Form 8-K filed on July 16, 2014, is incorporated herein by reference. | |||||||
FN 22 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibits 10.31 to our Current Report on Form 8-K filed on October 17, 2014, is incorporated herein by reference. | |||||||
FN 23 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.34 to our Annual Report on Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. | |||||||
FN 24 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.35 to our Quarterly Report on Form 10-Q for the period ended June 30, 2015, is incorporated herein by reference. | |||||||
FN 25 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.32 to our Current Report on Form 8-K filed on October 17, 2014, is incorporated herein by reference. | |||||||
FN 26 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.37 to our Quarterly Report on Form 10-Q for the period ended June 30, 2016, is incorporated herein by reference. | |||||||
FN 27 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.38 to our Quarterly Report on Form 10-Q for the period ended September 30, 2016, is incorporated herein by reference. |
FN 28 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.39 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. | |||||||
FN 29 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.40 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. | |||||||
FN 30 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.41 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. | |||||||
FN 31 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.42 to our Quarterly Report on Form 10-Q for the period ended September 30, 2018, is incorporated herein by reference. | |||||||
FN 32 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.43 to our Annual Report on Form 10-K for the year ended December 31, 2018, is incorporated herein by reference. | |||||||
FN 33 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.44 to our Annual Report on Form 10-K for the year ended December 31, 2018, is incorporated herein by reference. | |||||||
FN 34 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.45 to our Quarterly Report on Form 10-Q for the period ended September 30, 2019, is incorporated herein by reference. | |||||||
FN 35 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.46 to our Quarterly Report on Form 10-Q for the period ended September 30, 2019, is incorporated herein by reference. | |||||||
FN 36 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.33 to our Current Report on Form 8-K filed on October 17, 2014, is incorporated herein by reference. | |||||||
FN 37 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 333-231032) as Exhibit 4.6 to our Registration Statement on Form S-3 filed on April 25, 2019, is incorporated herein by reference. | |||||||
FN 38 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.47 to our Annual Report on Form 10-K for the year ended December 31, 2019, is incorporated herein by reference. | |||||||
FN 39 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.48 to our Quarterly Report on Form 10-Q for the period ended March 31, 2021, is incorporated herein by reference. | |||||||
FN 40 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.49 to our Annual Report on Form 10-K for the year ended December 31, 2021, is incorporated herein by reference. | |||||||
FN 41 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.50 to our Annual Report on Form 10-K for the year ended December 31, 2021, is incorporated herein by reference. | |||||||
FN 42 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.51 to our Quarterly Report on Form 10-Q for the year ended March 31, 2022, is incorporated herein by reference. | |||||||
FN 43 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.52 to our Quarterly Report on Form 10-Q for the year ended September 30, 2022, is incorporated herein by reference. | |||||||
FN 44 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-07183) as Exhibit 10.53 to our Quarterly Report on Form 10-Q for the year ended June 30, 2023, is incorporated herein by reference. |
TEJON RANCH CO. | ||||||||
November 7, 2023 | /s/ Gregory S. Bielli | |||||||
Date | Gregory S. Bielli | |||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
November 7, 2023 | /s/ Brett A. Brown | |||||||
Date | Brett A. Brown | |||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
November 7, 2023 | /s/ Robert D. Velasquez | |||||||
Date | Robert D. Velasquez | |||||||
Senior Vice President and Chief Accounting Officer | ||||||||
(Principal Accounting Officer) |
Dated: | November 7, 2023 | /s/ Gregory S. Bielli | |||||||||
Gregory S. Bielli | |||||||||||
President and Chief Executive Officer |
Dated: | November 7, 2023 | /s/ Brett A. Brown | |||||||||
Brett A. Brown | |||||||||||
Executive Vice President and Chief Financial Officer |
Dated: | November 7, 2023 | |||||||
/s/ Gregory S. Bielli | ||||||||
Gregory S. Bielli | ||||||||
President and Chief Executive Officer | ||||||||
/s/ Brett A. Brown | ||||||||
Brett A. Brown | ||||||||
Executive Vice President and Chief Financial Officer |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (347) | $ 10,173 | $ 1,697 | $ 13,825 |
Other comprehensive income: | ||||
Unrealized gain (loss) on available-for-sale securities | 52 | (101) | 129 | (278) |
Unrealized gain on interest rate swap | 1,734 | 1,608 | 2,019 | 5,819 |
Other comprehensive income before taxes | 1,786 | 1,507 | 2,148 | 5,541 |
Provision for income taxes related to other comprehensive income items | (500) | (422) | (601) | (1,553) |
Other comprehensive income | 1,286 | 1,085 | 1,547 | 3,988 |
Comprehensive income | 939 | 11,258 | 3,244 | 17,813 |
Comprehensive (loss) income attributable to non-controlling interests | (6) | (11) | (3) | 1 |
Comprehensive income attributable to common stockholders | $ 945 | $ 11,269 | $ 3,247 | $ 17,812 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Real estate development | $ 330,566 | $ 321,293 |
Common stock, par value per share (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued shares (in shares) | 26,726,464 | 26,541,553 |
Common stock, outstanding shares (in shares) | 26,726,464 | 26,541,553 |
Centennial | ||
Real estate development | $ 115,221 | |
Centennial | ||
Real estate development | $ 117,518 | $ 115,221 |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|||||||
Operating Activities | |||||||||||
Net loss | $ (347) | $ 10,173 | $ 1,697 | $ 13,825 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,003 | 3,342 | |||||||||
Amortization of (discount) premium of marketable securities | (442) | 116 | |||||||||
Equity in earnings of unconsolidated joint ventures, net | (1,161) | (1,991) | (4,616) | (4,867) | |||||||
Non-cash retirement plan expense | 200 | 81 | |||||||||
Profit from water sales | [1] | (490) | (1,889) | ||||||||
Profit from land sales | [2] | 0 | (18,372) | ||||||||
Loss (gain) on sale of property plant and equipment | 59 | (1,140) | |||||||||
Deferred income taxes | 0 | (315) | |||||||||
Stock compensation expense | 2,369 | 2,088 | |||||||||
Excess tax (benefit) loss from stock-based compensation | (105) | 3 | |||||||||
Loan fee write-off | 0 | 85 | |||||||||
Distribution of earnings from unconsolidated joint ventures | 13,176 | 7,336 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables, inventories, prepaids and other assets, net | (5,231) | 851 | |||||||||
Current liabilities | 5,130 | 724 | |||||||||
Net cash provided by operating activities | 14,750 | 1,868 | |||||||||
Investing Activities | |||||||||||
Maturities and sales of marketable securities | 91,831 | 27,961 | |||||||||
Funds invested in marketable securities | (87,272) | (48,614) | |||||||||
Real estate and equipment expenditures | (13,513) | (17,687) | |||||||||
Investment in unconsolidated joint ventures | (3,750) | (175) | |||||||||
Distribution of equity from unconsolidated joint ventures | 10,645 | 3,968 | |||||||||
Proceeds from water sales | [1] | 1,324 | 5,202 | ||||||||
Investments in water assets | (6,070) | (988) | |||||||||
Net proceeds from land sales | [2] | 0 | 24,950 | ||||||||
Net cash used in investing activities | (6,805) | (5,383) | |||||||||
Financing Activities | |||||||||||
Borrowings of long-term debt | 0 | 49,080 | |||||||||
Repayments of long-term debt | (1,321) | (51,272) | |||||||||
Deferred financing costs | 0 | (181) | |||||||||
Interest rate swap settlement | [3] | 0 | 1,123 | ||||||||
Taxes on vested stock grants | (2,594) | (1,122) | |||||||||
Net cash used in financing activities | (3,915) | (2,372) | |||||||||
Increase (decrease) in cash and cash equivalents | 4,030 | (5,887) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 39,619 | 37,398 | $ 37,398 | ||||||||
Cash, cash equivalents, and restricted cash at end of period | 43,649 | 31,511 | 43,649 | 31,511 | 39,619 | ||||||
Reconciliation to amounts on consolidated balance sheets: | |||||||||||
Cash and cash equivalents | 43,149 | 30,308 | 43,149 | 30,308 | 39,119 | ||||||
Restricted cash (Shown in Other Assets) | 500 | 1,203 | 500 | 1,203 | |||||||
Total cash, cash equivalents, and restricted cash | $ 43,649 | $ 31,511 | 43,649 | 31,511 | $ 39,619 | ||||||
Non-cash investing activities | |||||||||||
Accrued capital expenditures included in current liabilities | 742 | 841 | |||||||||
Accrued long-term water assets included in current liabilities | $ 1,248 | $ 374 | |||||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Sep. 30, 2023 |
Dec. 31, 2022 |
Jun. 27, 2022 |
|||||
Proceeds from sale of other investments | [1] | $ 1,324,000 | ||||||
Profit from water sales | [1] | 490,000 | ||||||
Net proceeds from land sales | [2] | 0 | ||||||
Profit related to water purchased in prior periods | [2] | 0 | ||||||
Termination fees | $ 1,123,200 | |||||||
Water | ||||||||
Proceeds from sale of other investments | 1,300,000 | |||||||
Profit from water sales | $ 500,000 | |||||||
Land | ||||||||
Net proceeds from land sales | $ 26,700,000 | |||||||
Profit related to water purchased in prior periods | $ 18,400,000 | |||||||
|
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The summarized information of Tejon Ranch Co. and its subsidiaries (the Company or Tejon), provided pursuant to Part I, Item 1 of Form 10-Q, is unaudited and reflects all adjustments which are, in the opinion of the Company’s management, necessary for a fair statement of the results for the interim period. All such adjustments are of a normal, recurring nature. The Company has evaluated subsequent events through the date of issuance of its consolidated financial statements. The periods ended September 30, 2023 and 2022 include the consolidation of CFL’s statement of operations within the resort/residential real estate development segment, statements of changes in equity and non-controlling interests, and statements of cash flows. The Company’s September 30, 2023 and December 31, 2022 balance sheets are presented on a consolidated basis, including the consolidation of CFL. The Company has identified five reportable segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. Information for the Company’s reportable segments is presented in its Consolidated Statements of Operations. The Company’s reportable segments follow the same accounting policies used for the Company’s consolidated financial statements. The Company uses segment profit or loss and equity in earnings of unconsolidated joint ventures as the primary measures of profitability to evaluate operating performance and to allocate capital resources. The results of the period reported herein are not indicative of the results to be expected for the full year due to the seasonal nature of the Company’s agricultural activities, water activities, timing of real estate sales and leasing activities. Historically, the Company’s largest percentages of farming revenues are recognized during the third and fourth quarters of the fiscal year. For further information and a summary of significant accounting policies, refer to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Financial Instruments Certain financial instruments are carried on the consolidated balance sheet at cost or amortized cost basis, which approximates fair value due to their short-term and highly liquid nature. These instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, security deposits held for customers, accounts payable, and other accrued liabilities. The fair value of the notes payable also approximates their carrying value, as the interest rates are primarily variable and approximate prevailing market interest rates for similar debt arrangements. Restricted Cash Restricted cash is included in Prepaid expenses and other current assets within the Consolidated Balance Sheets and primarily relates to funds held in escrow. The Company had $500,000 of restricted cash as of September 30, 2023. Recent Accounting Pronouncements Business Combinations - Joint Venture Formations In August 2023, the Financial Accounting Standards Board, or FASB, issued ASU No. 2023-05, "Business Combinations - Joint Venture Formations." This ASU addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The pronouncement requires a joint venture to initially measure contributions at fair value upon formation, which is more relevant than the carrying amounts of the contributed net assets and would reduce equity method basis differences. The amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. This pronouncement is not expected to have a material effect on our consolidated financial statements.
|
EQUITY |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | EQUITY Earnings Per Share (EPS) Basic net income or loss per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding during the year. Diluted net income or loss per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding and the weighted-average number of shares outstanding assuming the issuance of common stock upon exercise of stock options, warrants to purchase common stock, and the vesting of restricted stock grants per ASC Topic 260, “Earnings Per Share.”
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MARKETABLE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES ASC Topic 320, “Investments – Debt and Equity Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:
ASC Topic 326, "Financial Instruments - Credit Losses," requires the Company to use an allowance approach when recognizing credit loss for available-for-sale debt securities, measured as the difference between the security's amortized cost basis and the amount expected to be collected over the security's lifetime. Under this approach, at each reporting date, the Company records impairment related to credit losses through earnings offset with an allowance for credit losses, or ACL. At September 30, 2023, the Company has not recorded any credit losses. As of September 30, 2023, the fair market value of marketable securities was $79,000 below their cost basis. The Company’s gross unrealized holding gains equaled $0 and gross unrealized holding losses equaled $79,000. For the nine-months ended September 30, 2023, the adjustment to accumulated other comprehensive loss reflected an improvement in market value of $129,000, including estimated taxes of $36,000. The Company elected to exclude applicable accrued interest from both the fair value and the amortized cost basis of the available-for-sale debt securities, and separately present the accrued interest receivable balance per ASC Topic 326. The accrued interest receivables balance totaled $213,000 as of September 30, 2023 and was included within the Prepaid expenses and other current assets line item of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable, as an allowance on possible uncollectible accrued interest is not warranted. U.S. Treasury and agency notes The unrealized losses on the Company's investments in U.S. Treasury and agency notes at September 30, 2023 and December 31, 2022 were caused by relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies. The unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. As of September 30, 2023 and December 31, 2022, the Company did not intend to sell these securities and it is not more-likely-than-not the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of September 30, 2023 and December 31, 2022. Corporate notes The contractual terms of those investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on corporate notes are a function of changes in investment spreads and interest rate movements and not changes in credit quality. The Company expects to recover the entire amortized cost basis of these securities. As of September 30, 2023 and December 31, 2022, the Company did not intend to sell these securities and it is not more-likely-than-not the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of September 30, 2023 and December 31, 2022. The following tables summarize the maturities, at par, of marketable securities as of:
The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s as of September 30, 2023.
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REAL ESTATE |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE | REAL ESTATE Our accumulated real estate development costs by project consisted of the following:
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LONG-TERM WATER ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM WATER ASSETS | LONG-TERM WATER ASSETS Long-term water assets consist of water and water contracts held for future use or sale. The water is held at cost, which includes the price paid for the water and the cost to pump and deliver the water from the California aqueduct into the water bank. Water is currently held in a water bank on Company land in southern Kern County and by the TCWD in the Kern Water Banks. The Company has secured SWP entitlements under long-term SWP water contracts within the Tulare Lake Basin Water Storage District, or Tulare Lake Basin, and the Dudley-Ridge Water District, or Dudley-Ridge, totaling 3,444 acre-feet of SWP entitlement annually, subject to SWP allocations. These contracts extend through 2035 and have been transferred to AVEK for the Company's use in the Antelope Valley. In 2013, the Company acquired a contract to purchase water that obligates the Company to purchase 6,693 acre-feet of water each year from the Nickel Family, LLC, or Nickel, a California limited liability company that is located in Kern County. The initial term of the water purchase agreement with Nickel runs to 2044 and includes a Company option to extend the contract for an additional 35 years. The purchase cost of water in 2023 is $928 per acre-foot. The purchase cost is subject to annual cost increases based on the greater of the Consumer Price Index or 3%. The water purchased above will ultimately be used in the development of the Company’s land for commercial/industrial real estate development, resort/residential real estate development, and farming. Interim uses may include the sale of portions of this water to third-party users on an annual basis until this water is fully allocated to Company uses, as described. Water revenues and cost of sales were as follows for the nine months ended ($ in thousands):
The costs assigned to water assets held for future use were as follows ($ in thousands):
Intangible Water Assets The Company’s carrying amounts of its purchased water contracts were as follows ($ in thousands):
Water contracts with the WRMWSD, and TCWD are also in place, but were entered into with each district at inception of the contract, and not purchased later from third-parties, and do not have a related financial value on the books of the Company. Therefore, there is no amortization expense related to these contracts. Total water resources, including both recurring and one-time usage, are:
Tejon Ranchcorp, or Ranchcorp, a wholly-owned subsidiary of Tejon Ranch Co., entered into a Water Supply Agreement with PEF in 2015. PEF is the current lessee of the Company in a land lease for the operation of a power plant. Pursuant to the Water Supply Agreement, PEF may purchase from the Company up to 3,500 acre-feet of water per year from January 1, 2017 through July 31, 2030, with an option to extend the term by three additional five-year periods. PEF is under no obligation to purchase water from the Company in any year but is required to pay the Company an annual option payment equal to 30% of the maximum annual payment. The price of the water under the Water Supply Agreement for 2023 is $1,261 per acre-foot of annual water, subject to 3% annual increases over the life of the contract. The Water Supply Agreement contains other customary terms and conditions, including representations and warranties which are typical for agreements of this type. The Company's commitments to sell water can be met through current water assets.
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ACCRUED LIABILITIES AND OTHER |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED LIABILITIES AND OTHER | ACCRUED LIABILITIES AND OTHER Accrued liabilities and other consisted of the following:
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LINE OF CREDIT AND LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LINE OF CREDIT AND LONG-TERM DEBT | LINE OF CREDIT AND LONG-TERM DEBT Debt consisted of the following:
On June 30, 2022, the Company entered into a variable rate term note, or New Term Note, and a new Revolving Line of Credit Note, or New RLC, with Bank of America, N.A, or collectively the New Credit Facility. The New Term Note provided a principal amount of $49,080,000 and a maturity date of June 30, 2032, which was used to pay off the existing Wells Fargo Amended Term Note. The Company evaluated the debt exchange under ASC 470 and determined that the exchange should be treated as a debt extinguishment. The amount available from the New RLC under the New Credit Facility is $40,607,000. The New Term Note had a $47,338,000 balance as of September 30, 2023. The interest rate per annum applicable to the New Term Loan is the daily SOFR plus a margin of 1.55 percentage points. The interest rate for the term of the New Term Note has been fixed through the use of an interest rate swap at a rate of 4.62%. The New Term Note requires monthly amortization payments pursuant to a schedule set forth in the New Term Note, with the final outstanding principal amount due June 30, 2032. The New Credit Facility is secured by the Company's farmland and farm assets, which include equipment, crops and crop receivables; the PEF power plant lease and lease site; and related accounts and other rights to payment and inventory. The New RLC had no outstanding balance as of September 30, 2023. At the Company’s option, the interest rate on this line of credit can float at a rate equal to Daily SOFR plus 1.37% or can be fixed at a rate equal to Term SOFR plus 1.37% above Term SOFR for interest periods elected by the Company. During the term of this RLC (which expires on June 30, 2027), the Company can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. The Company also has a $4,750,000 promissory note agreement whose principal and interest due monthly began October 1, 2013. The promissory note is secured by four commercial properties at TRCC-West that are leased by fast casual restaurant operators. The interest rate on this promissory note is 4.25% per annum, with principal and interest payments ending on September 1, 2028. The balance as of September 30, 2023 was $1,494,000.
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OTHER LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES | OTHER LIABILITIES Other liabilities consisted of the following:
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STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS | STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS The Company’s stock incentive plans provide for the making of awards to employees based upon a service condition or through the achievement of performance-related objectives. The Company has issued three types of stock grant awards under these plans: restricted stock with service condition vesting; performance share grants that only vest upon the achievement of specified performance conditions, such as share price, or as Performance Condition Grants; and performance share grants that include threshold, target, and maximum achievement levels based on the achievement of specific performance measures, or Performance Milestone Grants. Performance Condition Grants with market-based conditions are based on the achievement of a target share price. The share price used to calculate fair value for market-based awards is determined using a Monte Carlo simulation. Failure to achieve the target share price will result in the forfeiture of shares. Forfeiture of share awards with service conditions or performance-based restrictions will result in a reversal of previously recognized share-based compensation expense. Forfeiture of share awards with market-based restrictions does not result in a reversal of previously recognized share-based compensation expense. The following is a summary of the Company’s Performance Condition Grants outstanding as of September 30, 2023:
The following is a summary of the Company’s stock grant activity, both time and performance share grants, assuming target achievement for outstanding performance grants for the nine months ended September 30, 2023:
The following is a summary of the assumptions used to determine the fair value for the Company’s outstanding market-based Performance Condition Grants as of September 30, 2023:
The unamortized cost associated with unvested stock grants and the weighted average period over which it is expected to be recognized as of September 30, 2023 were $2,780,000 and 20 months, respectively. The fair value of restricted stock with time-based vesting features is based upon the Company’s share price on the date of grant and is expensed over the service period. The fair value of Performance Milestone Grants that cliff vest based on the achievement of performance conditions is based on the share price of the Company’s stock on the day of grant multiplied by the number of shares probable to vest based on the estimated achievement of specific performance measures. Because the ultimate vesting of all performance grants is tied to the achievement of a performance condition, the Company estimates whether the performance condition will be met and over what period of time. Ultimately, the Company will adjust stock compensation costs according to the actual outcome of the performance condition. Under the 2023 Stock Incentive Plan, each non-employee director receives all or a portion of his or her annual compensation in stock. The stock is granted at the end of each quarter based on the quarter-end stock price. The following table summarizes stock compensation costs for the Company's 2023 Stock Incentive Plan, and outstanding grants for the 1998 Stock Incentive Plan, or the Employee Plan for the following periods:
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INTEREST RATE SWAP |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST RATE SWAP | INTEREST RATE SWAP On June 30, 2022, the Company entered into a variable rate term note, or New Term Note, with Bank of America, N.A. On the same day, the Company entered into a new interest rate swap agreement to reduce its exposure to fluctuations in the floating interest rate tied to SOFR under the New Term Note. Per ASC 815, an entity may apply the shortcut method to hedging relationships that meet all of the conditions under ASC 815. The Company performed an initial assessment of the hedging relationship and determined it is appropriate to apply the shortcut method as all conditions were met. The new interest rate swap qualified as an effective cash flow hedge under the guidance of ASC 815. Applying the shortcut method allows the Company to assume that it has a perfectly effective hedging relationship, therefore there is no need for the Company to perform any quantitative assessments of whether the hedge is highly effective. As of September 30, 2023, the fair value of the interest rate swap agreement was greater than its cost basis and as such, the mark-to-market adjustment is recorded within Other Assets on the Consolidated Balance Sheets. The Company had the following outstanding interest rate swap agreement designated as an interest rate cash flow hedge as of September 30, 2023 and December 31, 2022 ($ in thousands):
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s provision for income taxes as of September 30, 2023 has been calculated by applying an estimate of the annual effective tax rate for the full year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items). For the nine months ended September 30, 2023, the Company’s income tax expense was $3,619,000 compared to $6,262,000 for the nine months ended September 30, 2022. Effective tax rates were 68% and 31% for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the Company had income taxes payable of $3,088,000. The Company classifies interest and penalties incurred on tax payments as income tax expense. For the nine months ended September 30, 2023, the Company’s effective tax rate was above statutory tax rates as a result of permanent differences related to Section 162(m) limitations. Section 162(m) compensation deduction limitations occurred as a result of changes in tax law arising from the 2017 Tax Cuts and Jobs Act.
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COMMITMENTS AND CONTINGENCIES |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Water Contracts The Company has secured water contracts that are encumbered by the Company's land. These water contracts require minimum annual payments, for which $11,657,000 is expected to be paid in 2023. For the first nine months of 2023, the Company has paid $10,700,000 for this water. These estimated water contract payments consist of SWP contracts with WRMWSD, TCWD, Tulare Lake Basin, Dudley-Ridge, and the Nickel water contract. The SWP contracts run through 2035 and the Nickel water contract runs through 2044, with an option to extend an additional 35 years. Contractual obligations for future water payments were $290,313,000 as of September 30, 2023. Contracts The Company exited a consulting contract during the second quarter of 2014 related to the Grapevine Development, or Grapevine project, and is obligated to pay an earned incentive fee at the time of its successful receipt of litigated project entitlements and at a value measurement date five-years after litigated entitlements have been achieved for Grapevine. The final amount of the incentive fee will not be determined until the future payment dates. As of September 30, 2023, the Company believes the net savings resulting from exiting the contract during this future time period will more than offset the incentive payment costs. Community Facilities Districts The TRPFFA is a joint powers authority formed by Kern County and TCWD to finance public infrastructure within the Company’s Kern County developments. For the development of TRCC, TRPFFA has created two CFDs: the West CFD and the East CFD. The West CFD has placed liens on 420 acres of the Company’s land to secure payment of special taxes related to $19,540,000 of outstanding bond debt sold by TRPFFA for TRCC-West. The East CFD has placed liens on 1,931 acres of the Company’s land to secure payments of special taxes related to $72,055,000 of outstanding bond debt sold by TRPFFA for TRCC-East. At TRCC-West, the West CFD has no additional bond debt approved for issuance. At TRCC-East, the East CFD has approximately $44,035,000 of additional bond debt authorized by TRPFFA that can be sold in the future. In connection with the sale of the bonds, there is a standby letter of credit for $4,393,000 related to the issuance of East CFD bonds. The standby letter of credit is in place to provide additional credit enhancement and cover approximately two years of interest on the outstanding bonds. This letter of credit will not be drawn upon unless the Company, as the largest landowner in the CFD, fails to make its property tax payments. The Company believes the letter of credit will never be drawn upon. The letter of credit is for two years and will be renewed in two-year intervals as necessary. The annual cost related to the letter of credit is approximately $62,000. As a landowner in each CFD, the Company is obligated to pay its share of the special taxes assessed each year. The secured lands include both the TRCC-West and TRCC-East developments. Proceeds from the sale of West CFD bonds went to reimburse the Company for public infrastructure costs related to the TRCC-West development. As of September 30, 2023, there were no additional improvement funds remaining from the West CFD bonds. There are $9,763,557 of additional improvement funds remaining within the East CFD bonds for reimbursement of public infrastructure costs during future years. During fiscal 2023, the Company expects to pay approximately $2,775,000 in special taxes. As development continues to occur at TRCC, new owners of land and new lease tenants, through triple net leases, will bear an increasing portion of the assessed special tax. This amount could change in the future, based on the amount of bonds outstanding and the amount of taxes paid by others. The assessment of each individual property sold or leased is not determinable at this time, because it is based on the current tax rate and assessed value of the property at the time of sale or on its assessed value at the time it is leased to a third-party. Accordingly, the Company was not required to recognize an obligation on September 30, 2023. Centennial On April 30, 2019, the Los Angeles County Board of Supervisors granted final entitlement approval for the Centennial project. On May 15, 2019, Climate Resolve filed an action in Los Angeles Superior Court (the Climate Resolve Action), pursuant to CEQA and the California Planning and Zoning Law, against the County of Los Angeles and the Los Angeles County Board of Supervisors (collectively, LA County) concerning LA County’s granting of approvals for the Centennial project, including certification of the final EIR and related findings (Centennial EIR); approval of associated general plan amendments; adoption of associated zoning; adoption of the Centennial Specific Plan; approval of a subdivision map for financing purposes; and adoption of a development agreement, among other approvals (collectively, the Centennial Approvals). Separately, on May 28, 2019, the CBD and the CNPS filed an action in Los Angeles County Superior Court (the CBD/CNPS Action) against LA County; like the Climate Resolve Action, the CBD/CNPS Action also challenges the Centennial Approvals. The Company, its wholly owned subsidiary Tejon Ranchcorp, and CFL are named as real parties-in-interest in both the Climate Resolve Action and the CBD/CNPS Action. The Climate Resolve Action and the CBD/CNPS Action collectively allege that LA County failed to properly follow the procedures and requirements of CEQA and the California Planning and Zoning Law. The Climate Resolve Action and the CBD/CNPS Action have been deemed “related” and, while not consolidated under court rules or the rules of civil procedure, the Los Angeles Superior Court judge (or Court) trying both cases determined during early trial management conferences to hold one set of hearings and issue one ruling on the matters as part of the adjudication. The Climate Resolve Action and CBD/CNPS Action seek to invalidate the Centennial Approvals and require LA County to revise the environmental documentation related to the Centennial project. The Court held three hearings for the CBD/CNPS Action and Climate Resolve Action on September 30, 2020, November 13, 2020, and January 8, 2021. On April 5, 2021, the Court issued its decision denying the petition for writ of mandate by CBD/CNPS and granting the petition for writ of mandate filed by Climate Resolve. In granting Climate Resolve’s petition, the Court found three specific areas where the EIR for the project was lacking. The Court ruled that California’s Cap-and-Trade Program cannot be used as a compliance pathway for mitigating GHG impacts for the project and therefore further ruled that additional analysis will be required related to all feasible mitigation of GHG impacts. The Court also found that the EIR must provide additional analysis and explanation of how wildland fire risk on lands outside of the project site, posed by on-site ignition sources, is mitigated to less than significant. On April 19, 2021, CBD filed a motion for reconsideration with the Court on the denial of their petition for writ of mandate to be granted prevailing party status in the Climate Resolve Action (“Motion for Reconsideration”). The hearing on the Motion for Reconsideration originally scheduled for August 13, 2021 was rescheduled to December 1, 2021 and further rescheduled as noted below. On November 30, 2021, the Company, together with Ranchcorp and CFL, entered into a Settlement Agreement with Climate Resolve. Pursuant to the Settlement Agreement, the Company has agreed: (1) to make Centennial a net zero GHG emissions project through various on-site and off-site measures including, but not limited to, installing electric vehicle chargers and establishing and funding incentive programs for the purchase of electric vehicles; (2) to fund certain on-site and off-site fire protection and prevention measures; and (3) to provide annual public reports and create an organization to monitor progress towards these commitments. The foregoing is only a summary of the material terms of the Settlement Agreement and does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to the Settlement Agreement. In exchange, Climate Resolve filed a request for dismissal of the Climate Resolve Action with prejudice from the Court. On December 3, 2021, the Court granted and entered Climate Resolve’s dismissal with prejudice concluding the Climate Resolve Action. On December 1, 2021, the Court continued CBD/CNPS Motion for Reconsideration to January 14, 2022, directing CBD/CNPS to evaluate the Settlement Agreement reached in the Climate Resolve Action to address issues surrounding remedies should CBD be granted prevailing party status in the Climate Resolve Action, and to evaluate the potential to settle or otherwise address CBD’s objections to the Centennial project. To that end, the Company met and conferred twice on January 4, 2022 and January 20, 2022. On January 14, 2022, the Court heard CBD/CNPS' Motion for Reconsideration and issued its decision granting CBD/CNPS prevailing party status in the Climate Resolve Action. The Court set a tentative hearing date of February 25, 2022 concerning the entry of final judgment and awarding of appropriate remedies, which was continued several times in 2022 either on the Court's own motion or at the request of the parties and was ultimately set for hearing on October 26, 2022. At the October 26th hearing, the Court agreed to: (a) hear the Company’s Motion for Reconsideration as to the successful challenges Climate Resolve prevailed upon within the Climate Resolve Action and ordered the Parties to appear on December 14, 2022 to hear the Company’s Motion for Reconsideration and (b) rule on the entry of final judgment and setting of remedies at a February 17, 2023 hearing date. At the December 14, 2022 hearing, the Court denied the Company’s Motion for Reconsideration (finding that the Company’s motion failed to support the statutory elements necessary to prevail on such motion). At the February 17, 2023 hearing, the Court took into submission the Parties’ legal briefs and oral arguments. On March 22, 2023, the Court decided in favor of CBD/CNPS when the Judge signed CBD/CNPS’s proposed form of judgment, which included a full rescission of the Centennial project approvals previously issued by Los Angeles County. On May 26, 2023, the Company filed a Notice of Appeal with the Superior Court, thereby appealing the Superior Court’s decision to the Second District of the California Court of Appeal. On June 27, 2023, CBD/CNPS cross-appealed the Superior Court’s ruling. During the appeal process the Superior Court’s order of the rescission of project approvals have been placed on hold. As the Company’s options to reinstate the project approvals remain pending, the monetary value of any adverse decision, if any, cannot be estimated at this time. Proceedings Incidental to Business From time to time, the Company is involved in other proceedings incidental to its business, including actions relating to employee claims, real estate disputes, contractor disputes and grievance hearings before labor regulatory agencies. The outcome of these other proceedings is not predictable. However, based on current circumstances, the Company believes the ultimate resolution of these other proceedings will not have a material adverse effect on the Company’s financial position, results of operations or cash flows, either individually or in the aggregate.
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RETIREMENT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANSThe Company sponsors a defined benefit retirement plan, or Benefit Plan, which covers eligible employees hired prior to February 1, 2007. The benefits are based on years of service and the employee’s five-year final average salary. Contributions are intended to provide for benefits attributable to service both to date and expected to be provided in the future. The Company funds the plan in accordance with the Employee Retirement Income Security Act of 1974 (ERISA). In April 2017, the Company froze the Benefit Plan as it relates to future benefit accruals for participants. The Company contributed $165,000 to the Benefit Plan in 2023. Benefit Plan assets consist of equity, debt and short-term money market investment funds. The Benefit Plan’s current investment policy changed during the third quarter of 2018. The policy's strategy seeks to minimize the volatility of the funding ratio. This objective will result in a prescribed asset mix between "return seeking" assets (e.g., stocks) and a bond portfolio (e.g., long duration bonds) according to a pre-determined customized investment strategy based on the Benefit Plan's funded status as the primary input. This path will be used as a reference point as to the mix of assets, which by design will de-emphasize the return seeking portion as the funded status improves. At September 30, 2023, the investment mixes were approximately at 99% debt and 1% money market funds. At December 31, 2022, the investment mixes were approximately 21% equity, 78% debt, and 1% money market funds. Equity investments consist of a combination of individual equity securities plus value funds, growth funds, large cap funds and international stock funds. The weighted-average discount rate used in determining the periodic pension cost is 5.00% in 2023 and 2022. The expected long-term rate of return on plan assets is 5.00% for both fiscal 2023 and 2022. The long-term rate of return on Benefit Plan assets is based on the historical returns within the plan and expectations for future returns. Total pension and retirement earnings for the Benefit Plan was as follows:
The Company has a Supplemental Executive Retirement Plan, or SERP, to restore to executives designated by the Compensation Committee of the Board of Directors the full benefits under the pension plan that would otherwise be restricted by certain limitations now imposed under the Internal Revenue Code. The SERP is currently unfunded. In April 2017, the Company froze the SERP as it relates to the accrual of additional benefits. The pension and retirement expense for the SERP was as follows:
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REPORTING SEGMENTS AND RELATED INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTING SEGMENTS AND RELATED INFORMATION The Company currently operates five reporting segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. For further details of the revenue components within each reporting segment, see Results of Operations by Segment in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations." Real Estate - Commercial/Industrial Development Commercial/Industrial real estate development segment revenues consist of land sale revenues, leases of land and/or building space to tenants at the Company's commercial retail and industrial developments, base and percentage rents from the PEF power plant lease, communication tower rents, land sales, and payments from easement leases. Refer to Note 15 (Investment in Unconsolidated and Consolidated Joint Ventures) for discussion of unconsolidated joint ventures. The following table summarizes revenues, expenses and operating income from this segment for the periods ended:
Real Estate - Resort/Residential Development The Resort/Residential real estate development segment is actively involved in pursuing land entitlement and development processes both internally and through joint ventures. The segment incurs costs and expenses related to land management activities on land held for future development, but currently generates no revenue. The segment generated losses of $367,000 and $372,000 for the three months ended September 30, 2023 and 2022, respectively. The segment generated losses of $1,079,000 and $1,218,000 for the nine months ended September 30, 2023 and 2022, respectively. Mineral Resources The Mineral Resources segment revenues include water sales and oil and mineral royalties from exploration and development companies that extract or mine natural resources from the Company's land. The following table summarizes revenues, expenses and operating results from this segment for the periods ended:
Farming The Farming segment revenues include the sale of almonds, pistachios, wine grapes, and hay. The following table summarizes revenues, expenses and operating results from this segment for the periods ended:
Ranch Operations The Ranch Operations segment consists of game management revenues and ancillary land uses, such as grazing leases and on-location filming. The following table summarizes revenues, expenses and operating results from this segment for the periods ended:
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INVESTMENT IN UNCONSOLIDATED AND CONSOLIDATED JOINT VENTURES |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT IN UNCONSOLIDATED AND CONSOLIDATED JOINT VENTURES | INVESTMENT IN UNCONSOLIDATED AND CONSOLIDATED JOINT VENTURES The Company maintains investments in joint ventures. The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting, unless the venture is a variable interest entity, or VIE, and meets the requirements for consolidation. The Company’s investment in its unconsolidated joint ventures as of September 30, 2023 was $31,345,000. Equity in earnings from unconsolidated joint ventures was $4,616,000 for the nine months ended September 30, 2023. The unconsolidated joint ventures have not been consolidated as of September 30, 2023, because the Company does not control the investments. The Company’s current joint ventures are as follows: •Petro Travel Plaza Holdings LLC – Petro Travel Plaza Holdings LLC, or Petro, is an unconsolidated joint venture with TravelCenters of America that develops and manages travel plazas, gas stations, convenience stores, and fast-food restaurants throughout TRCC. The Company has 50% of the voting rights but participates in 60% of all profits and losses. The Company does not control the investment due to having only 50% of the voting rights. The Company's partner is the managing partner and performs all of the day-to-day operations and has significant decision-making authority over key business components, such as fuel inventory and pricing at the facilities. The Company's investment in this joint venture was $17,209,000 as of September 30, 2023. •Majestic Realty Co. – Majestic Realty Co., or Majestic, is a privately-held developer and owner of master planned business parks in the United States. The Company has five active 50/50 joint ventures with Majestic to acquire, develop, manage, and operate industrial real estate at TRCC. The partners have equal voting rights and share equally in the profit and loss of the joint ventures. •On March 29, 2022, TRC-MRC 5 LLC was formed to pursue the development, construction, lease-up, and management of an approximately 446,400 square foot industrial building located within TRCC-East. The construction is financed by a $49,226,000 construction loan that had an outstanding balance of $25,049,000 as of September 30, 2023. This debt is guaranteed by both the Company and Majestic. In December 2022, the Company contributed land with fair value of $8,501,000 to TRC-MRC5, LLC. The total cost of the land was $2,477,000. The Company recognized profit of $3,012,000 and deferred profit of $3,012,000 after applying the five-step revenue recognition model in accordance with ASC Topic 606 - Revenue From Contracts With Customers and ASC Topic 323, Investments - Equity Method and Joint Ventures. The project is currently under construction and is expected to be completed by the first quarter of 2024. The joint venture has leased 100% of the rentable space. •On March 25, 2021, TRC-MRC 4 LLC was formed to pursue the development, construction, lease-up, and management of a 629,274 square foot industrial building located within TRCC-East. The construction was completed in the fourth quarter of 2022, and the Company has leased 100% of the rentable space. The joint venture refinanced its construction loan in March 2023 with a promissory note. The note matures on March 1, 2033, and had an outstanding balance of $61,993,000 as of September 30, 2023. In 2021, the Company contributed land with a fair value of $8,464,000 to TRC-MRC 4, LLC. The total cost of the land was $2,895,000. The Company recognized profit of $2,785,000 and deferred profit of $2,785,000. Since its inception, the Company has received excess distributions resulting in a deficit balance in its investment of $5,893,000. In accordance with the applicable accounting guidance, the Company reclassified excess distributions to Other Liabilities within the Consolidated Balance Sheets. The Company expects to continue to record equity in earnings as a debit to the investment account and if it were to become positive, the Company would reclassify the liability to an asset. If it becomes obvious that any excess distribution may not be returned (upon joint venture liquidation or otherwise), the Company will immediately recognize the liability as income. •In November 2018, TRC-MRC 3, LLC was formed to pursue the development, construction, leasing, and management of a 579,040 square foot industrial building located within TRCC-East. TRC-MRC 3, LLC qualified as a VIE from inception, but the Company is not the primary beneficiary; therefore, it does not consolidate TRC-MRC 3, LLC in its financial statements. The building was 100% leased as of September 30, 2023. In March 2019, the joint venture entered into a promissory note with a financial institution to finance the construction of the building. The note matures on May 1, 2030 and had an outstanding principal balance of $33,847,000 as of September 30, 2023. On April 1, 2019, the Company contributed land with a fair value of $5,854,000 to TRC-MRC 3, LLC in accordance with the limited liability agreement. The Company's investment in this joint venture was $134,000 as of September 30, 2023. •In August 2016, the Company partnered with Majestic to form TRC-MRC 2, LLC to acquire, lease, and maintain a fully occupied warehouse at TRCC-West. The partnership acquired the 651,909 square foot building for $24,773,000, which was largely financed through a promissory note guaranteed by both partners. The promissory note was refinanced on June 1, 2018 with a $25,240,000 promissory note. The note matures on July 1, 2028 and had an outstanding principal balance of $22,110,000 as of September 30, 2023. The building was 100% leased as of September 30, 2023. Since its inception, the Company has received excess distributions resulting in a deficit balance in its investment of $1,668,000. In accordance with the applicable accounting guidance, the Company reclassified excess distributions to Other Liabilities within the Consolidated Balance Sheets. The Company expects to continue to record equity in earnings as a debit to the investment account and if it were to become positive, the Company would reclassify the liability to an asset. If it becomes obvious that any excess distribution may not be returned (upon joint venture liquidation or otherwise), the Company will immediately recognize the liability as income. •In September 2016, TRC-MRC 1, LLC was formed to develop and operate an approximately 480,480 square foot industrial building at TRCC-East. The building was 100% leased as of September 30, 2023. Since its inception, the Company has received excess distributions resulting in a deficit balance in its investment of $1,604,000. In accordance with the applicable accounting guidance, the Company reclassified excess distributions to Other Liabilities within the Consolidated Balance Sheets. The Company expects to continue to record equity in earnings as a debit to the investment account and if it were to become positive, the Company will reclassify the liability to an asset. If it becomes obvious that any excess distribution may not be returned (upon joint venture liquidation or otherwise), the Company will immediately recognize the liability as income. The joint venture refinanced its construction loan in December 2018 with a mortgage loan. The original balance of the mortgage loan was $25,030,000, of which $22,308,000 was outstanding as of September 30, 2023. •TRCC/Rock Outlet Center LLC – This joint venture was formed in 2013 with Rockefeller Group Development Corporation, or Rockefeller. to develop, own, and manage a net leasable 326,000 square foot outlet center on land at TRCC-East. At September 30, 2023, the Company’s equity investment balance in this joint venture was $9,723,000. The Company controls 50% of the voting interests of TRCC/Rock Outlet Center LLC; thus, it does not control the joint venture by voting interest alone. The Company is the named managing member. The managing member’s responsibilities relate to the routine day-to-day activities of TRCC/Rock Outlet Center LLC. However, all operating decisions, including the setting and monitoring of the budget, leasing, marketing, financing, and selection of the contractor for any construction, are jointly made by both members of the joint venture. Therefore, the Company concluded that both members have significant participating rights that are sufficient to overcome the presumption of the Company controlling the joint venture through it being named the managing member. As a result, the investment in TRCC/Rock Outlet Center LLC is being accounted for under the equity method. On August 16, 2023, the TRCC/Rock Outlet Center LLC joint venture successfully extended the maturity date of its term note with a financial institution from May 31, 2024 to June 30, 2025. In connection with the loan extension, the joint venture also reduced the outstanding amount by $6,000,000. As of September 30, 2023, the outstanding balance of the term note was $20,924,000. The Company and Rockefeller guarantee the performance of the debt. •Centennial Founders, LLC – CFL is a joint venture with Tri Pointe Homes to pursue the entitlement and development of land that the Company owns in Los Angeles County. As of September 30, 2023, the Company owned 93.39% of CFL. The Company’s investment balance in each of its unconsolidated joint ventures differs from its capital accounts in the respective joint ventures. The variance represents the difference between the cost basis of assets contributed by the Company and the agreed upon fair value of those assets. Unaudited condensed statement of operations for the nine months ended September 30, 2023 and condensed balance sheet information of the Company’s unconsolidated joint ventures as of September 30, 2023 and December 31, 2022 are as follows:
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RELATED PARTY TRANSACTIONS |
9 Months Ended |
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Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSTCWD is a not-for-profit governmental entity organized on December 28, 1965, pursuant to Division 13 of the Water Code, State of California. TCWD is a landowner voting district, which requires an elector, or voter, to be an owner of land located within the district. TCWD was organized to provide the water needs for future municipal, residential, and industrial development. The Company is the largest landowner and taxpayer within TCWD. The Company has a water service contract with TCWD that entitles it to receive all of TCWD’s SWP entitlement and all of TCWD’s banked water. TCWD is also entitled to make assessments of all taxpayers within the district, to the extent funds are required to cover expenses and to charge water users within the district for the use of water. From time to time, the Company transacts with TCWD in the ordinary course of business.The Company has water contracts with WRMWSD for SWP water deliveries to its agricultural and municipal/industrial operations in the San Joaquin Valley. The terms of these contracts extend to 2035. Under the contracts, the Company is entitled to annual water for 5,496 acres of land, or 15,547 acre-feet of water, subject to SWP allocations. The Company's Executive Vice President and Chief Operating Officer is one of nine directors at WRMWSD. As of September 30, 2023, the Company paid $4,488,000 for these water contracts and related costs. |
SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn October 23, 2023, the Company terminated its interest rate swap agreement with Bank of America, N.A., and received a $3,715,000 cash termination fee from Bank of America, N.A. |
BASIS OF PRESENTATION (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Financial Instruments | Financial Instruments Certain financial instruments are carried on the consolidated balance sheet at cost or amortized cost basis, which approximates fair value due to their short-term and highly liquid nature. These instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, security deposits held for customers, accounts payable, and other accrued liabilities. The fair value of the notes payable also approximates their carrying value, as the interest rates are primarily variable and approximate prevailing market interest rates for similar debt arrangements.
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Restricted Cash | Restricted CashRestricted cash is included in Prepaid expenses and other current assets within the Consolidated Balance Sheets and primarily relates to funds held in escrow. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Business Combinations - Joint Venture Formations In August 2023, the Financial Accounting Standards Board, or FASB, issued ASU No. 2023-05, "Business Combinations - Joint Venture Formations." This ASU addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The pronouncement requires a joint venture to initially measure contributions at fair value upon formation, which is more relevant than the carrying amounts of the contributed net assets and would reduce equity method basis differences. The amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. This pronouncement is not expected to have a material effect on our consolidated financial statements.
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EQUITY (Tables) |
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Schedule of Weighted Average Number of Shares Outstanding |
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MARKETABLE SECURITIES (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Securities | The following is a summary of available-for-sale securities at:
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Schedule of Maturities, at Par, of Marketable Securities by Year | The following tables summarize the maturities, at par, of marketable securities as of:
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REAL ESTATE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate | Our accumulated real estate development costs by project consisted of the following:
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LONG-TERM WATER ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Water Revenues and Cost of Sales | Water revenues and cost of sales were as follows for the nine months ended ($ in thousands):
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Schedule of Tangible Water Assets | The costs assigned to water assets held for future use were as follows ($ in thousands):
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Schedule of Finite-Lived Intangible Assets | The Company’s carrying amounts of its purchased water contracts were as follows ($ in thousands):
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Schedule of Components of Water Assets | Total water resources, including both recurring and one-time usage, are:
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ACCRUED LIABILITIES AND OTHER (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities and Other | Accrued liabilities and other consisted of the following:
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LINE OF CREDIT AND LONG-TERM DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Long-term Debt | Debt consisted of the following:
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OTHER LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Liabilities | Other liabilities consisted of the following:
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STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Performance Share Grants with Performance Conditions | The following is a summary of the Company’s Performance Condition Grants outstanding as of September 30, 2023:
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Schedule of Stock Grant Activity | The following is a summary of the Company’s stock grant activity, both time and performance share grants, assuming target achievement for outstanding performance grants for the nine months ended September 30, 2023:
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Schedule of Assumptions Used to Determine The Price of Market-Based Performance Condition Grants | The following is a summary of the assumptions used to determine the fair value for the Company’s outstanding market-based Performance Condition Grants as of September 30, 2023:
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Schedule of Stock Compensation Costs for Employee and NDSI Plans | The following table summarizes stock compensation costs for the Company's 2023 Stock Incentive Plan, and outstanding grants for the 1998 Stock Incentive Plan, or the Employee Plan for the following periods:
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INTEREST RATE SWAP (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The Company had the following outstanding interest rate swap agreement designated as an interest rate cash flow hedge as of September 30, 2023 and December 31, 2022 ($ in thousands):
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RETIREMENT PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Pension Cost | Total pension and retirement earnings for the Benefit Plan was as follows:
The pension and retirement expense for the SERP was as follows:
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REPORTING SEGMENTS AND RELATED INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Segment Revenues | The following table summarizes revenues, expenses and operating income from this segment for the periods ended:
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INVESTMENT IN UNCONSOLIDATED AND CONSOLIDATED JOINT VENTURES (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Statements of Operations and Balance Sheet Information of Consolidated and Unconsolidated Joint Ventures | Unaudited condensed statement of operations for the nine months ended September 30, 2023 and condensed balance sheet information of the Company’s unconsolidated joint ventures as of September 30, 2023 and December 31, 2022 are as follows:
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BASIS OF PRESENTATION (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
segment
|
Sep. 30, 2022
USD ($)
|
|
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 5 | |
Restricted cash | $ | $ 500 | $ 1,203 |
EQUITY - Schedule of Weighted Average Number of Shares Outstanding (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Weighted-average number of shares outstanding: | ||||
Common stock (in shares) | 26,725,628 | 26,491,251 | 26,695,714 | 26,468,099 |
Common stock equivalents (in shares) | 72,435 | 47,507 | 76,668 | 164,364 |
Diluted shares outstanding (in shares) | 26,798,063 | 26,538,758 | 26,772,382 | 26,632,463 |
MARKETABLE SECURITIES - Additional Information (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Fair market value of investment securities below their cost basis | $ 79 |
Gross unrealized holding gains | 0 |
Gross unrealized holding losses | 79 |
Improvement in market value | 129 |
Estimated tax of change in value of available-for-sale securities | 36 |
Accrued interest receivable balance | $ 213 |
MARKETABLE SECURITIES - Schedule of Available-for-sale Securities by Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Summary of maturities, at par, of marketable securities | ||
2023 | $ 15,970 | $ 32,695 |
2024 | 13,646 | 1,000 |
Total | 29,616 | 33,695 |
U.S. Treasury and agency notes | ||
Summary of maturities, at par, of marketable securities | ||
2023 | 7,070 | 15,225 |
2024 | 10,866 | 500 |
Total | 17,936 | 15,725 |
Corporate notes | ||
Summary of maturities, at par, of marketable securities | ||
2023 | 8,900 | 17,470 |
2024 | 2,780 | 500 |
Total | $ 11,680 | $ 17,970 |
REAL ESTATE - Schedule of Real Estate (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Real estate development | $ 330,566 | $ 321,293 |
Less accumulated depreciation | (3,910) | (3,650) |
Real estate and improvements - held for lease, net | 16,780 | 16,940 |
Mountain Village | ||
Property, Plant and Equipment [Line Items] | ||
Real estate development | 154,539 | 153,156 |
Centennial | ||
Property, Plant and Equipment [Line Items] | ||
Real estate development | 117,518 | 115,221 |
Grapevine | ||
Property, Plant and Equipment [Line Items] | ||
Real estate development | 40,302 | 39,273 |
Tejon Ranch Commerce Center | ||
Property, Plant and Equipment [Line Items] | ||
Real estate development | 18,207 | 13,643 |
Tejon Ranch Commerce Center | $ 20,690 | $ 20,590 |
LONG-TERM WATER ASSETS - Schedule of Water Revenues and Cost of Sales (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
acre ft
|
Sep. 30, 2022
USD ($)
acre ft
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Acre-Feet Sold | acre ft | 4,020 | 9,600 |
Revenues | $ 6,615 | $ 13,635 |
Cost of sales | 4,015 | 8,944 |
Profit | $ 2,600 | $ 4,691 |
LONG-TERM WATER ASSETS - Schedule of Tangible Water Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long Lived Assets Held-for-sale [Line Items] | ||
Total water held for future use at cost | $ 31,795 | $ 25,310 |
Banked water and water for future delivery | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total water held for future use at cost | 31,469 | 23,855 |
Transferable water | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total water held for future use at cost | $ 326 | $ 1,455 |
LONG-TERM WATER ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Costs | $ 36,800 | $ 36,800 |
Accumulated Depreciation | (16,088) | (15,065) |
Net cost of purchased water contracts | 20,712 | 21,735 |
Total cost of water held for future use | 31,795 | 25,310 |
Net investments in water assets | 52,507 | 47,045 |
Contract-based Intangible Assets | Dudley-Ridge water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 11,581 | 11,581 |
Accumulated Depreciation | (6,152) | (5,790) |
Contract-based Intangible Assets | Nickel water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 18,740 | 18,740 |
Accumulated Depreciation | (6,372) | (5,890) |
Contract-based Intangible Assets | Tulare Lake Basin water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 6,479 | 6,479 |
Accumulated Depreciation | $ (3,564) | $ (3,385) |
LONG-TERM WATER ASSETS - Schedule of Components of Water Assets (Details) - acre ft acre ft in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Water held for future use | ||
Total water held for future use | 124,697 | 105,451 |
Purchased water contracts | 10,137 | 10,137 |
Total purchased water contracts | 31,433 | 31,433 |
Total water held for future use and purchased water contracts | 156,130 | 136,884 |
Tejon-Castac Water District | ||
Water held for future use | ||
Total water held for future use | 62,379 | 52,554 |
Purchased water contracts | 5,749 | 5,749 |
AVEK | ||
Water held for future use | ||
Company water bank | 52,631 | 50,349 |
Transferable water | 3,097 | 2,548 |
Recharged project water | 6,590 | 0 |
WRMWSD - Contracts with the Company | ||
Water held for future use | ||
Purchased water contracts | 15,547 | 15,547 |
ACCRUED LIABILITIES AND OTHER (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued vacation | $ 676 | $ 735 |
Accrued paid personal leave | 309 | 348 |
Accrued bonus | 1,896 | 2,280 |
Property tax payable | 1,344 | 0 |
Other | 279 | 239 |
Accrued liabilities and other | $ 4,504 | $ 3,602 |
LINE OF CREDIT AND LONG-TERM DEBT - Schedule of Components of Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long-term Debt, Current and Noncurrent [Abstract] | ||
Notes payable | $ 48,832 | $ 50,154 |
Less: line-of-credit and current maturities of long-term debt | (1,844) | (1,779) |
Less: deferred loan costs | (195) | (214) |
Long-term debt, less current portion | $ 46,793 | $ 48,161 |
OTHER LIABILITIES - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities | ||
Excess joint venture distributions and other | $ 9,172 | $ 4,156 |
Total | 15,212 | 10,380 |
Pension Plan | ||
Other Liabilities | ||
Pension and supplemental executive retirement plan liability | 0 | 38 |
Pension account balance asset | 175 | |
SERP | ||
Other Liabilities | ||
Pension and supplemental executive retirement plan liability | $ 6,040 | $ 6,186 |
STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS - Additional Information (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
award
| |
Share-Based Payment Arrangement [Abstract] | |
Number of types of stock grant awards | award | 3 |
Total compensation cost not yet recognized | $ | $ 2,780 |
Total compensation cost not yet recognized, period for recognition | 20 months |
STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS - Schedule of Performance Share Grants with Performance Conditions (Details) - Performance share grants |
9 Months Ended |
---|---|
Sep. 30, 2023
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target performance (in shares) | 221,245 |
Maximum performance (in shares) | 319,559 |
STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS - Schedule of Stock Grant Activity (Details) - Performance share grants |
9 Months Ended |
---|---|
Sep. 30, 2023
shares
| |
Summary of stock grant activity: | |
Stock Grants Outstanding Beginning of Period at Target Achievement (in shares) | 234,899 |
New Stock Grants/Additional Shares due to Achievement in Excess of Target (in shares) | 321,026 |
Vested Grants(in shares) | (169,621) |
Expired/Forfeited Grants (in shares) | (16,610) |
Stock Grants Outstanding End of Period at Target Achievement (in shares) | 369,694 |
STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS - Schedule of Stock Compensation Costs for Employee and NDSI Plans (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Stock Compensation Costs | $ 2,748 | $ 2,327 |
1998 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee and Director - expensed | 1,967 | 1,646 |
Capitalized | 379 | 239 |
Total Stock Compensation Costs | 2,346 | 1,885 |
NDSI Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee and Director - expensed | $ 402 | $ 442 |
INTEREST RATE SWAP - Schedule of Interest Rate Derivatives (Details) - Level 2 - Interest Rate Swap - Other Liabilities - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Weighted Average Interest Pay Rate | 4.62% | 4.62% |
Fair Value | $ 3,448 | $ 1,430 |
Notional Amount | $ 47,338 | $ 48,462 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 2,215 | $ 3,221 | $ 3,619 | $ 6,262 | |
Effective income tax rate | 68.00% | 31.00% | |||
Income tax payables | $ 3,088 | $ 3,088 | $ 0 |
RETIREMENT PLANS - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Assumptions used in determining periodic pension cost: | |||
Discount rate | 5.00% | 5.00% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service period | 5 years | ||
Contributions to defined benefit plan | $ 165 | ||
Assumptions used in determining periodic pension cost: | |||
Expected long-term rate of return on plan assets | 5.00% | 5.00% | |
Pension Plan | Equities | |||
Current investment policy targets: | |||
Current investment mix | 21.00% | ||
Pension Plan | Treasury/Corporate Notes | |||
Current investment policy targets: | |||
Current investment mix | 99.00% | 78.00% | |
Pension Plan | Money Market Funds | |||
Current investment policy targets: | |||
Current investment mix | 1.00% | 1.00% |
RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Pension Plan | ||
(Cost)/earnings components: | ||
Interest cost | $ (312) | $ (234) |
Expected return on plan assets | 315 | 414 |
Net amortization and deferral | (51) | (36) |
Total net periodic pension (cost)/earnings | (48) | 144 |
SERP | ||
(Cost)/earnings components: | ||
Interest cost | (219) | (138) |
Net amortization and deferral | (30) | (87) |
Total net periodic pension (cost)/earnings | $ (249) | $ (225) |
REPORTING SEGMENTS AND RELATED INFORMATION - Additional Information (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
segment
|
Sep. 30, 2022
USD ($)
|
|
Revenue from External Customer [Line Items] | ||||
Number of reportable segments | segment | 5 | |||
Segment losses | $ 10,172,000 | $ 20,487,000 | $ 29,919,000 | $ 47,882,000 |
Real estate - resort/residential | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | |||
Real estate - resort/residential | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Segment losses | $ 367,000 | $ 372,000 | $ 1,079,000 | $ 1,218,000 |
REPORTING SEGMENTS AND RELATED INFORMATION - Schedule of Revenue Components of Mineral Resources Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from External Customer [Line Items] | ||||
Total expenses | $ 10,172 | $ 20,487 | $ 29,919 | $ 47,882 |
Operating results | 37 | 10,988 | (1,347) | 13,882 |
Mineral resources | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 3,118 | 3,139 | 11,630 | 19,238 |
Total expenses | 2,000 | 1,745 | 6,991 | 11,347 |
Operating results | $ 1,118 | $ 1,394 | $ 4,639 | $ 7,891 |
REPORTING SEGMENTS AND RELATED INFORMATION - Schedule of Revenue Components of Farming Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from External Customer [Line Items] | ||||
Total expenses | $ 10,172 | $ 20,487 | $ 29,919 | $ 47,882 |
Operating results | 37 | 10,988 | (1,347) | 13,882 |
Farming | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 2,642 | 4,776 | 4,852 | 7,352 |
Total expenses | 2,157 | 8,752 | 5,644 | 13,976 |
Operating results | $ 485 | $ (3,976) | $ (792) | $ (6,624) |
REPORTING SEGMENTS AND RELATED INFORMATION - Schedule of Revenue Components of Ranch Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from External Customer [Line Items] | ||||
Total expenses | $ 10,172 | $ 20,487 | $ 29,919 | $ 47,882 |
Operating results | 37 | 10,988 | (1,347) | 13,882 |
Ranch operations | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,052 | 1,208 | 3,384 | 3,011 |
Total expenses | 1,196 | 1,143 | 3,864 | 3,708 |
Operating results | $ (144) | $ 65 | $ (480) | $ (697) |
RELATED PARTY TRANSACTIONS (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
a
director
acre ft
|
Dec. 31, 2022
acre ft
|
|
Related Party Transaction [Line Items] | ||
Purchased water contracts | 10,137,000 | 10,137,000 |
Wheeler Ridge Maricopa Water Storage District | ||
Related Party Transaction [Line Items] | ||
Purchased water contracts | 15,547,000 | 15,547,000 |
SWP Water Contracts | Wheeler Ridge Maricopa Water Storage District | Executive Vice President and Chief Operating Officer | ||
Related Party Transaction [Line Items] | ||
Acres of land | a | 5,496 | |
Purchased water contracts | 15,547 | |
Number of directors | director | 9 | |
Water contracts and related costs | $ | $ 4,488 |
SUBSEQUENT EVENTS (Details) $ in Thousands |
Oct. 23, 2023
USD ($)
|
---|---|
Subsequent Event | Interest Rate Swap | |
Subsequent Event [Line Items] | |
Cash fee from termination of interest rate swap agreement | $ 3,715 |
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